ICICI Direct is bullish on TCI Express has recommended buy rating on the stock with a target price of Rs 900 in its research report dated November 05, 2019.
ICICI Direct's research report on TCI Express
TCI Express (TCIEL) reported a robust Q2FY20, in line with I-direct estimates on the revenue and EBITDA front while it was higher than I-direct estimates on the PAT front (mainly due to lower tax rate). Revenue growth improved in Q2FY20 after it had reported subdued revenue growth of 4% in Q1FY20. EBITDA margins increased 36 bps to 11.4% (I-direct estimate: 11.7%) mainly due to lower operating expense to sales ratio (71.6% vs. 74.1% in Q2FY19). Subsequently, absolute EBITDA grew 13% YoY to Rs 31 crore. PAT grew 61% YoY to Rs 26 crore and came above I-direct estimate of Rs 23 crore, mainly due to lower tax rate (14% vs. estimated 25.2%).
We value TCIEL at 25x P/E to a target price of Rs 900, with a BUY recommendation.
For all recommendations report, click here
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